 "Finmin asks banks to monitor NPAs")
Finance Minister P Chidambaram today asked public-sector banks to set up a vertical under an officer of the rank of branch manager to monitor non-performing assets (NPAs).
Addressing a review meeting of Public Sector banks in the capital today, the finance minister also directed all banks to monitor at least 30 big accounts in the organisation.
He also said that overall economic picture in the country is not as gloomy as being predicted by some. Banks have cleared 137 of 176 large projects pending before March 31, 2013 and between April 2013 to September 2013, 173 projects involving investments of Rs 3.24 lakh crore has been processed, the finance minister informed.
Also Read
The meeting has been called to assess whether credit is being provided to productive sectors, selected areas are being given a boost and if the lenders are reining in the growth of non-performing assets (NPAs). The meeting also take stock of interest rates on non-resident Indian accounts, in focus to take advantage of the rupee’s depreciation.
The meeting comes weeks after the government agreed to infuse additional capital into banks to generate demand in consumer goods. It will assess how the reduction in lending rates by banks in recent weeks has helped credit off take in two-wheelers and consumer durables, as well as in other sectors.